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ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating
ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,900 units. Amount Sales $ 4,676,100 3,527,059 Cost of goods sold Selling and administrative expenses 482,601 Net income $ 666,440 Fixed costs for the period were cost of goods sold $ 960,000, and selling and administrative expenses $ 244,000. In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $ 29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses. (a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, eg. 15.25. Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses eg. (45).) Reject Order Accept Order Net Income Increase (Decrease) Revenues $ ta $ TA $ Cost of goods sold Selling and administrative expenses Net income $ $ $ (b) Should ThreePoint Sports Inc. accept the special order? e Textbook and Media What is the minimum selling price on the special order to produce net income of $ 5.03 per ball? (Round answer to 2 decimal places, eg. 15.25.) Minimum selling price $ e Textbook and Media
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